A bill to amend title XVI of the Social Security Act to provide for the Federal employment of certain employees of States and political subdivisions thereof, and for other purposes.

Provides for the Federal employment of employees of State and political subdivisions under the Medicaid program of the Social Security Act.

Allows the Secretary of Health, Education, and Welfare to appoint an eligible individual to a position in the competitive service.

Designates an eligible individual as one who was an employee of a State or political subdivision of a State who was compensated under titles I, X, XIV, XVI, XIX, or part A of title IV of the Social Security Act; and who was the incumbent of a position performing certain specified duties within a State or political subdivision.

Outlines special conditions of appointment and the compensation which applies to appointees. Specifies guidelines for leave, retirement annuity, and receipt of credit for prior service.

Permits employees under this Act to enforce their rights in Federal district court.